The following selected transactions were completed during August between Summit Company and Beartooth Co.:

Aug.1Summit Company sold merchandise on account to Beartooth Co., $49,550, termsFOB destination, 2/15, n/eom. Thecost of the merchandise soldwas $30,000.2Summit Company paid freight of $1,265 for delivery of merchandise sold to Beartooth Co. on August 1.5Summit Company sold merchandise on account to Beartooth Co., $59,560, termsFOB shipping point, n/eom. The cost of the merchandise sold was $43,840.9Beartooth Co. paid freight of $2,290 on August 5 purchase from Summit Company.15Summit Company sold merchandise on account to Beartooth Co., $56,100, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,715, which was added to theinvoice. The cost of the merchandise sold was $36,310.16Beartooth Co. paid Summit Company for purchase of August 1.25Beartooth Co. paid Summit Company on account for purchase of August 15.31Beartooth Co. paid Summit Company on account for purchase of August 5.Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

Chart of Accounts-Summit Company

CHART OF ACCOUNTSSummit CompanyGeneral LedgerASSETS110Cash121Accounts Receivable-Beartooth Co.125Notes Receivable130Merchandise Inventory131Estimated Returns Inventory140Office Supplies141Store Supplies142Prepaid Insurance180Land192Store Equipment193Accumulated Depreciation-Store Equipment194Office Equipment195Accumulated Depreciation-Office Equipment

LIABILITIES210Accounts Payable216Salaries Payable218Sales Tax Payable219Customer Refunds Payable221Notes Payable

EQUITY310Common Stock311Retained Earnings312Dividends313Income Summary

REVENUE410Sales610Interest Revenue

EXPENSES510Cost of Merchandise Sold521Delivery Expense522Advertising Expense524Depreciation Expense-Store Equipment525Depreciation Expense-Office Equipment526Salaries Expense531Rent Expense533Insurance Expense534Store Supplies Expense535Office Supplies Expense536Credit Card Expense539Miscellaneous Expense710Interest Expense

Chart of Accounts-Beartooth Co.

CHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110Cash120Accounts Receivable125Notes Receivable130Merchandise Inventory131Estimated Returns Inventory140Office Supplies141Store Supplies142Prepaid Insurance180Land192Store Equipment193Accumulated Depreciation-Store Equipment194Office Equipment195Accumulated Depreciation-Office Equipment

LIABILITIES211Accounts Payable-Summit Company216Salaries Payable218Sales Tax Payable219Customer Refunds Payable221Notes Payable

EQUITY310Common Stock311Retained Earnings312Dividends313Income Summary

REVENUE410Sales610Interest Revenue

EXPENSES510Cost of Merchandise Sold521Delivery Expense522Advertising Expense524Depreciation Expense-Store Equipment525Depreciation Expense-Office Equipment526Salaries Expense531Rent Expense533Insurance Expense534Store Supplies Expense535Office Supplies Expense536Credit Card Expense539Miscellaneous Expense710Interest Expense

Journal-Summit Company

(1) Journalize the August transactions for Summit Company. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

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Journal-Beartooth Co.

(2) Journalize the August transactions for Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

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CengageNOWv2|Online leaching and learning resource from Cengage Learning 7/18/2017 Periodic Inventory by Three Methods; Cost of Merchandise Sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units @ $106 Mar. 10 Purchase 60 units @ $118 Aug. 30 Purchase 20 units @ $124 Dec. 12 Purchase 80 units @ $128 There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Merchandise Inventory and Cost of Merchandise Sold Inventory Method Merchandise Inventory First-in, first-out(RFO) $ Merchandise Sold $ Last-in, first-out (LIFO) Weighted average cost http://v2.cengagenow.comfllrn/takeAssignmenl/takeAssignmentMaln.dc?lnvoker=assignmenls&takeAssignmentSessionLocator=assignment-take&inprogress=false Date Units Jan-01 Mar-10 Aug-30 Dec-12 Total cost of goods Ending inventory Units sold Inventory method FIFO LIFO Weighted average Answer 2: Date Accounts Aug-01 Accounts receivable - Beartooth co Sales Cost of Merchandise sold Merchandise inventory Aug-02 Delivery expenses Cash Aug-05 Accounts receivable - Beartooth co Sales Per unit coTotal 40 106 4240 60 118 7080 20 124 2480 80 128 10240 200 120.2 24040 80 120 MerchandisMerchandise sold 10240 13800 8960 15080 9616 14424 Debit Credit 49550 49550 30000 30000 1265 1265 59560 59560 Cost of Merchandise sold Merchandise inventory 43840 Merchandise inventory Cost of goods sold 43840 43840 43840 Aug-15 Accounts receivable - Beartooth Co Sales 56100 Accounts receivable - Beartooth Co Cash 1715 Cost of merchandise eold Merchandise inventory 56100 1715 36310 36310 Aug-16 Cash Sales discount Accounts receivable - Beartooth Co 48559 991 Aug-25 Cash Sales discount Accounts receivable - Beartooth Co 55539 561 Aug-31 Cash Accounts receivable - Beartooth Co 59560 Aug-01 Merchandise inventory Accounts payable- Summit company 49550 Aug-05 Merchandise inventory Accounts payable - Summit company 59500 Aug-09 Merchandise inventory Cash 49550 56100 59560 49550 59500 2290 2290 Aug-15 Merchandise inventory Accounts payable - Summit company 56100 Aug-16 Accounts payable - Summit Cash Merchandise inventory 49550 Aug-25 Accounts payable - Summit Cash Merchandise inventory 56100 Aug-31 Accounts payable - Summit Cash 59560 56100 48559 991 55539 561 59560 Answer 3 Beg Sale Pur Sale Pur Sale 42 37 20 19 11 10 45 47 49 Ending inventory using FIFO 343 Ending inventory using LIFO 321